Marketing Plan:Marketing Plan:

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Marketing Plan:Marketing Plan:

“Guava Health Drink”

MR Palm BeveragesMR Palm Beverages Ltd.Ltd.

“Guava Health Drink” MR Palm Beverages Ltd.MR Palm Beverages Ltd.

Course Code: Course Title:

Executive summary Executive summary MR Palm Beverages Ltd. is preparing to launch a ‘Guava Fruit juice’ product. Though this product involves a high cost and risk

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because it is new to both the company and to the domestic marketplace, it has a great potential for success. Despite the dominance of juice leader Pran, we can compete because our offering combines a pioneer product type in its category at a reasonable price. We are targeting specific segments in consumer and business market, taking advantages of the opportunities indicated by demand for health drinks. As the product is new, the primary objectives of this plan are to achieve the whole domestic target market within the first two years and .6 million unit sales in the first year, and 2.2 million units in the fifth year. The primary financial objectives are to achieve first year sales revenue Tk. 12 million, keep first year losses not over Tk.2 million. We have an aim to reach break-even by third year. In the fifth year the projected sales revenue is Tk.44 million through 2.2 million unit sales. We will have a net income of Tk. 10 million in the same year.As the key to the success of modern day business is to make the customer delighted and making long-lasting partnership with them. We may produce a very best quality of product with the enrichment of the technology. But now-a-days no consumer is satisfied with only the quality product. And the scope to the organization to provide a very exceptional product is almost impossible with the dependability on only the technology. In order to make a sustainable development the company has to differentiate its offerings with enriched product line and extensive marketing. Marketing deals with the efforts of making the consumer delighted by informing and servicing them. In our plan we have tried to discuss all the aspects that will influence the introduction of a new product. Here we have chosen the Guava Health Drink as our new product line with a mission to serve the market with high quality health drinks at a reasonable price. To launch the product we have conducted an extensive research. The research suggests that we can reach the breakeven point by the third year, and to achieve it we need to adopt extensive promotional campaign. Through the pathway of the plan we have found some highly positive sides of the company for which it will go a long way with this new product. At the same time we have sorted out some problems. We have to face some low price beverages and some low quality competitor. At the same time we have to also consider all the natural fruit drinks. But as we are the first company in our country to introduce Guava Fruit juice & as the market have a very high demand for it, we are hopeful to achieve our company objectives profitably.

Marketing Plan:Marketing Plan:“Guava Health Drink”

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1. 0 Company and Business

1.1 Company Description and Product offering

The Company “Palm Beverage Ltd.” is a hypothetical start-up

company established on July, 2009 with a view to make the busy life

easy and comfortable ensuring the best quality food products

available in convenient form. In this regard our first concern was

mango juice and orange juice. Then we introduced mineral water.

Now at this time to enrich our product line we have tried to assess

the customers’ health conscious attitudes & their demand for

various health drinks. From extensive research we have found

Guava Fruit juice as a promising sector. Therefore our company is

trying to introduce its new product – “Guava Health Drink”

We are always committed to maintain our quality & therefore ensuring the quality product at reasonable price is our company Mission.

The Company Slogan - "Drink Healthy, Live Healthy"Live Healthy"

1.2 The Organizational Structure

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CEO- Chief Executive Officer

Production

Manager

Marketing Manager

Promotional Manager

Sales & Distributi

on Manager

Finance Manager

Customer Relationship

Manager

Chairman

2. 0 Situation Analysis

Palm Beverages Ltd. has been operating for a year. Its products have been well received, and marketing will be the key to the development of brand and product awareness as well as the growth of customer base. Palm Beverages Ltd. offer several different health drinks, serving the growing inline beverage industry.

2.1 Current Situation - Macro environment

2.1.1 Legal situation: Legal situation means the rules and laws of a country. This situation

influences each and every business sector. The legal threats will be-

Taxation policy: Taxation affects the pricing strategy. If

government imposed tax on any products then the price of

the product rises.

Increase of vat on the product: Imposes vat also increases

price.

Government’s regulation: Sometimes government ban

importing and exporting some products, which affect the

business firms.

2.1.2 Economical situation: The economical threat which will influenced our business sector –

Inflation situation: Inflation means an increase in the

amount of money or credit available in relation to the amount

of goods or services available, which causes an increase in the

general price level of goods and services. Over time, inflation

reduces the purchasing power of money, makes it worth less.

So inflation increases the price. We will try to control the

minimum production cost from the very beginning of our

business.

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Income of the people: The demand of the product depends

on the income of the people. If the income is high then people

wants to buy more.

2.1.3 Political situation:Political situation is another important macro-environment factor

that influences the investment of business.

Political stability: For any business, political stability is the

most important factor. Foreign investment depends on the

political stability. If the political situation is not stable it affects

badly on the business firm.

War: if there is any war situation then the business and

industries face losses and sometimes industry collapse.

Poverty: Insatiable political situation increases poverty and

from the business perspective it is not profitable in any way.

2.1.4 Ecological situation:It is the geographical environment, which has a great effect on the

business.

Earthquake.

Drought.

Flood.

Cyclone

Famine

Our country is a tropical country and also surrounded by rivers.

Almost every year flood occurs in our country. In the time of flood

the transportation and communication systems are hampered. So

considering the situation we increase or lower the supply and also

we store as the situation demand.

2.1.5 Technological situation:

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Technology is one of the important facts for achieving success in the

business.

Follow the traditional way.

Adopt new technology.

We use both traditional and modern technology to produce our

product, for the advertising and for keeping the records.

2.1.6 Socio-cultural situation: Culture means the norms, value, and behavior of the society. It

affects the business sector. In our business we are very much aware

about our own culture and tradition.

2.2 Current Situation- Market Analysis

2.2.1 Market DefinitionA market is the set of all actual and potential buyers of a market offer.The size of a market hinges on the number of buyers who might exist for a particular market offer. The potential market is the set of consumers who profess a sufficient level of interest in a market offer. Marketers talk about potential markets, available markets, served markets, and penetrated markets.Consumer interest is not enough to define a market. Potential consumers must have enough income and must have access to the product offer. The available market is the set of consumers who have interest, income, and access to a particular offer.

For some market offers, the company or government may restrict sales to certain groups. For example, a particular state might ban motorcycle sales to anyone under21 years of age. The eligible adults constitute the qualified available market—the set of consumers who have interest, income, access, and qualifications for the particular market offer.A company can go after the whole available market or concentrate on certain segments.

The target market (also called the served market) is the part of the qualified available market the company decides to pursue. The company, for example, might decide to concentrate its marketing

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and distribution effort on the East Coast. The company will end up selling to a certain number of buyers in its target market. The penetrated market is the set of consumers who are buying the company’s product.

Now we are in the 21st century, and we are living a more busy life. The agro- industry of our and the overseas has noticed the factor. So they are becoming more interested in building the agro-based industry. Now the demand of prepared food is increasing as with the increase of working family. The people are now becoming more health conscious so the demand of the energy drink and health drink is increasing.

Now not only the agro-based companies are dealing with the food product, some major organization which previously deal with other sector now going to deal in the prepared food sector.

2.2.2 Market Demand

As we’ve seen, the marketer’s first step in evaluating marketing opportunities is to estimate total market demand. Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. Market demand is not a fixed number but rather a function of the stated conditions. For this reason, it can be called the market demand function. We can think of two extreme types of markets, the expansible and the non-expansible. An expansible market is very much affected in its total size by the level of industry marketing expenditures. A nonexpansible market—for example, the market for opera—is not much affected by the level of marketing expenditures. Organizations selling in a non-expansible market must accept the market’s size (the level of primary demand for the product class) and direct their efforts to winning a larger market share for their product (the level of selective demand for the company’s product).It is important to emphasize that the market demand function is not a picture of market demand over time. Rather, the curve shows alternative current forecasts of market demand associated with alternative possible levels of industry marketing effort in the current period.

2.2.3 Market Forecast

Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the market forecast.

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2.2.4 Market Potential

The market forecast shows expected market demand, not maximum market demand.For the latter, we have to visualize the level of market demand resulting from a “very high” level of industry marketing expenditure, where further increases in marketing effort would have little effect in stimulating further demand.Market potential is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.The phrase “for a given market environment” is crucial. Companies cannot do anything about the position of the market demand function, which is determined by the marketing environment. However, companies influence their particular location on the function when they decide how much to spend on marketing.

2.2.5 Target Markets

Our primary target market is the house hold individual and the various health institutes that concerns with the health care sectors. In the first phase we will go for the persons with medium income. We have divided our target market in the following segments:

Individuals. We are going to collaborate with various departmental stores to gain the individual customer.

Corporate customer. As we are going to bring a health drink in the market so we have a aim to go for the corporate deal with various health organization, hospital, restaurant and schools.

Market Targeting Strategy

As we have segmented our market according to the need of the consumers. Now our time to target one or more segment the available segmenting strategies available to us are as follows:

Single-Segment Concentration:

1 st Year

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M1 M2 M3

P1

P2

P3

M1 M2 M3

P1

P2

P3

Selective Specialization:

2 nd Year

2.2.6 Market Segmentation

As we entering in the age of globalization, we are going to face a huge challenge in doing business. Now a day most of the business is running by more concentrating on customer. We in the starting phase of our plan go through the customer analysis. In that sector we went for the customer analysis on the basis of the demographic, Psychographic, behavioral, Geographic: criteria. By analyzing them we have segmented the market mainly in two ways the individual customer and the institutional customer. In deciding the segments we have considered the following characteristics:

Measurability of the segment Sustainability of the segment Accessibility Differentiability Action ability

2.2.8 Competitor Analysis

We’ll be the first company to bring the Guava health drink in the market, so someone may think that we don’t have any competitor. But the matter is that we may not have any direct competition but we are not without challenge or competition. We have to face a huge competition from the following sector

Challenge from the other fruit juice company Challenge from the soft drinks company Challenge from the level of the natural use of the Guava We may have to compete with the other food items as the

income of the people is very much limited.

competitors' strengths and weaknesses

Strengths:

Most of our competitors are in the matured level.

They have the goodwill in the market.

They all have regular and repeated customer.

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M1 M2 M3

P1

P2

P3

Full Market Coverage:

3 rd Year

Here,

P = Product

M = Market

These customers are convinced by their quality of product,

price and design of products.

Weakness:

They mainly use local machinery to produce their product.

Most of them ignored modern technology.

Some of their products costs are very high.

Opportunities:

They can adopt new technology.

They can lower their price.

Threat:

New entrants with lower price and better quality of

products.

2.2.9 Market Trends

The market is expanding with the variation of new product

and also new competitors. Some new products such as

coconut water bottle have been introduced in the market.

Thus it seems that the market potentiality for health juice is

promising.

2.3 Current Situation - Consumer Analysis

We have conducted a huge research program to find out the need of the consumer and their characteristics. The consumer’s characteristics are as follows:

2.3.1 Nature of Buying Decision

Most of the Consumers of juice industry buy their product with a known brand, or a quality product they have already perceived.

2.3.2 Participants

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We also consider the matter of health and nutritious consciousness of the people. Now a day, people are getting educated and the various promotional campaigns launched by the government to build the awareness among the people to take such healthy food. As a result the people are getting concern regarding health and the food habit had got a huge change.

2.3.3 Geographic:

Our immediate geographic area is the Dhaka zone. All over the country needs the product. The target customer is all most 100million of our country.

2.3.4 Demographic:

Male/female Married Age Income level Have attended college Combined working family

2.3.5 Psychographic:

Social class Lifestyle Personality

2.3.6 Behavioral:

Benefits User status Attitude toward product

2.3.7 Buyer motivation and expectations

Byers will be motivated enough to purchase this product because it

involves health consciousness at the same time thirst with a

reasonable price.

2.3.8 Loyalty segments

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Individual Customer One -to-one profitable

growth through

Customer Needs and Marketing capturing customer

share,

Values integration loyalty, and

lifetime

and chain value

2.4 Current situation-Internal

2.4.1 Company Resources

Financial

Currently the company is financially as strong as to carry on

the expenditure for the first two years. After the first two

years the company will be financially viable.

People

Only a small number of employees work in the organization.

The company currently operates in a small building. Some

eight executives and some 100 workers do their jobs. If the

company needs more, it outsources employee.

Time

The company operates all the year round.

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Starting focus means endsPoint

Skills

The management and the employees are highly efficient and

skilled.

2.4.2 Objectives

Market and product is the main object that we deal to do the business. In the market-product focus section we give a deep attention to the aspects related with this arena. Here we have tried to give a clear description of five-year marketing and product objective of our organization.

Mission statement and Vision statement

We exist to serve the market with high quality product at reasonable price. We want to serve in such a way that each of our activities must benefit and enhance the welfare of the society at the same time we want to provide the stockholder a reasonable profit.

Corporate Objectives

To establish and maintain a high quality image in the food market.

To operate in the domestic market with selective target segment for the first year.

To capture the whole domestic market within two years. To capture the foreign market with 25% of company’s net

sales at the end of the third year.

Financial Objective

To increase the sales at least by 8% We have an aim to reach break-even by third year.

In developing a marketing program we need to deal with the strategies of product, price, place and promotion very efficiently, so that we can ensure our company mission as well as can provide quality Health Drink. We may

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need to adjust these 4 Ps according to the requirements of our product. Now we are going to discussed each of these.

Marketing Objective

Our company has a basic aim to achieve the position of the market leader in the fruit juice arena. We just start with a health drink our aim is not only to do business for profit but we want to serve the society with an aim to build a strong a nutritious nation. We want to take the full advantage of the brand potential at the same time building the base from other revenue objective will be achieved. We have a plan to achieve a goal in both individual level and the corporate level.

The detailed of the marketing objective is as follows:

Current market. We want to increase our current market by emphasizing the retail sales. To capture the market more efficiently we have a plan to give the full support with our promotional team. We are going to take a huge promotional campaign in support of the marketing objective. We also have an aim to capture the corporate level market of the restaurant, hospital, various office, old homes and some other prospective market.

New market. We have an aim to capture some new market each year. As our plan includes we want to capture the all metropolitan market by the end of the second year and we want to enter the overseas market and the mass market of the country by the end of the third year. Our projected market share that we want to capture at the end of the fifth year is 38%.

Food services. Although we start as a health drink company but we have a major aim to enter into the other juice and energy drink for the market. Our projected sales at the end of the fifth year will be Tk. 60000000.

New products. Our company has an aim to bring new product with the need of the market. To do the job effectively and efficiently we are going conduct a well defined marketing research and we have a very good and experience research team to do the job. Now although we are going to serve the market with only 250ml Guava health drink, we have a plan to bring a family size pack very early in the market.

Long term objectives

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Nowadays people are gradually becoming interested in

traditional style. Tradition has become fashion now. Palm

Beverages Ltd. provides customers with the necessary and

unique products they need. And they are satisfied enough with

the market, but of course they have some suggestions for the

improvement of the drinks. Palm Beverages Ltd. is successfully

spreading its business all over the country. It has regular

customers who are coming to purchase and coming repeatedly

with their complaints, compliments and suggestions.

Description of the basic business philosophy

Our company is formed with a huge experienced group of entrepreneurs. We’ll be very much in a strong position by using the expertise of them. Although our company is a new organization but team is very confidence to do better. Each personnel are very efficient in their respective field.

2.5 Summary of Situation Analysis

2.5.1 SWOT analysis of the company Internal Strength

The greatest strength is our availability of the raw material. The cheap labor force. The highly experience management team. The best technical support in. Excellent financial support. Own backward linkage High quality

Internal weaknesses Small size of management can hamper the operation Low national awareness Limited resource Economical instability

External opportunities Huge market need The brand name The best technological support The scope to expand the business in overseas The income level of consumers are increasing The government is encouraging to establish agro-based

industry

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As more and more families are dual working so the demand of the prepared food will increase.

External Threats

The low priced, low quality competitor The premium/value based pricing may hamper to enter in to

the market very easily Risk of duplicating the product by the competitor Political unrest.

4.0 Marketing Strategy

The key to marketing strategy is focusing on the newness, health and fitness, and brand awareness.

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4.1 Marketing Strategy-Product

4.1.1 Product Mix

All of the products or product lines offered by a firm. Some companies have a wide product mix geared toward a diverse consumer group. For example, Procter & Gamble has a product mix that includes detergents, toothpaste, Procter bar soap, deodorants, disposable diapers, coffee, household paper goods, and food products. Our company offers mango juice, orange juice, and also mineral water. Offering a wide product mix provides an opportunity to increase the amount of goods sold to each customer but has costs associated with the variety of resources (distribution, storage, marketing, etc.) required to support it

4.1.2 Product Strengths and Weaknesses

We decided to serve our customer with high quality drink through maintaining the natural nutrition & vitamin level. The production process of this health drink completely ensures the use of 100% natural Guava Fruit Pulp.

To ensure the high quality drink we follow the BSTI approved formula and they also certified our drink.

By analyzing the behavior of the consume we decided to bring the juice in two sizes in terms of quantity. We will develop 250 milligram.

4.1.3 Perceptual Mapping

Displaying consumers’ perceptions of related products is only half the story. Many perceptual maps also display consumers’ ideal

points. These points reflect ideal combinations of the two dimensions as seen by a consumer. The next diagram shows a study

of consumers’ ideal points in the Guava health drink product space. Each dot represents one respondent's ideal combination of the two dimensions. Areas where there is a cluster of ideal points

(such as A) indicates a market segment. Areas without ideal points are sometimes referred to as demand voids.

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Perceptual Map of Ideal Points and Clusters

A company considering introducing a new product will look for areas with a high density of ideal points. They will also look for areas without competitive rivals. This is best done by placing both the ideal points and the competing products on the same map.

4.1.4. Product Life Cycle Management

Product Life Cycle

Product Developme

nt

Introduction Growth Saturation – Maturity

Obsolescence- Decline

The product is in the product development stage.

4.1.5 Brand name, brand image, and brand equity

As a new entrance company it is very difficult to start with one product line but this product resemble so much opportunities before us that we decided to stick only with this and our product name is GUAVA HEALTH DRINK. A result of its successful efforts to establish a strong brand. A brand is a name, symbol, or other feature that distinguishes the

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company's goods or services in the marketplace. Consumers often rely upon brands to guide their purchase decisions. The positive feelings consumers accumulate about a particular brand are what makes the brand a valuable asset for the company that owns it. Alan Mitchell of Marketing Week described brand equity as "the storehouse of future profits which result from past marketing activities."

Guavas are often marketed as "superfruits", being rich in vitamins A and C with seeds that are rich in omega-3, omega-6 polyunsaturated fatty acids and especially dietary fiber. A single Apple Guava (P. guajava) fruit contains over four times the amount of vitamin C as a single orange (over 200 mg per 100 g serving) and also has good levels of the dietary minerals, potassium, magnesium, and generally a broad, low-calorie profile of essential nutrients.However, nutritional value is greatly dependent on species, the Strawberry Guava (P. littorale var. cattleianum) notably containing only 30–40 mg of vitamin C per 100g serving, a fifth of the vitamin C found in more common varieties. Vitamin C content in the Strawberry Guava is still a high percentage (62%) of the Dietary Reference Intake, however.

'Thai Maroon' guavas, a red Apple Guava cultivar extremely rich in antioxidants

Green apple guavas are less rich in antioxidantsGuavas contain both carotenoids and polyphenols – the major classes of antioxidant pigments, giving them relatively high dietary antioxidant value among plant foods. As these pigments produce the fruits' color, guavas that are red or orange in color have more potential value as antioxidants sources than yelllowish-green ones.

Food Value

(Per 100 g of Edible Portion)

Apple Guava, per 100 g of edible portionCalories 36-50Moisture 77-86 gDietary Fiber 2.8-5.5 gProtein 0.9-1.0 g

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Fat 0.1-0.5 gAsh 0.43-0.7 gCarbohydrates 9.5-10 gCalcium 9.1–17 mgPhosphorus 17.8–30 mgIron 0.30-0.70 mgCarotene (Vitamin A) 200-400 I.UAscorbic acid (Vitamin C) 200-400 mgThiamin (Vitamin B1) 0.046 mgRiboflavin (Vitamin B2) 0.03-0.04 mgNiacin (Vitamin B3) 0.6-1.068 mg

Brand equity is created through aggressive mass marketing campaigns. Good examples of companies with strong brand equity are corporations such as Nike and Coca-Cola, whose corporate logos are recognized worldwide. That is attractiveness and familiarity of a Brand Name in the general marketplace. Brand equity permits companies to charge premium prices for products and services, contributing to increased profit margins. Brand equity is therefore a valuable asset that companies invest huge amounts of money to develop.

The basis of brand equity lies in the relationship that develops between a consumer and the company selling the products or services under the brand name. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on his or her perception of the brand and its value. The consumer will reward the brand owner with dollars, almost assuring future cash flows to the company, as long as his or her brand preference remains intact. The buyer may even pay a higher price for the company's goods or services because of his commitment, or passive agreement, to buy the brand. In return for the buyer's brand loyalty, the company essentially assures the buyer that the product will confer the benefits associated with, and expected from, the bran

4.1.6 Product Portfolio Analysis

BCG MATRIX (The Boston Consulting Groups):

The Boston Consulting Groups (BCG) assumes that a firm must generate cash from

the businesses. For this, it needs a strong competitive position in the mature market.

We can see that the vertical axis of the model represents market growth rate. Market

growth rate provides a measure of the market attractiveness of an industry. The

horizontal axis shows the unit’s relative market share. Relative market share serves as

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a measure of company strength in the market.

a) Question mark: Business in high growth Industries with low

relative market share will be placed in this box.

b) Star: Business in high growth industries with high relative

market share falls into this category.

c) Cash cow: Business with high relative market share in a low

growth industry falls into this category.

d) Dog: Low share businesses in low growth markets are called

dogs.

Industry

Growth

Relative Market Share

Palm Beverages Ltd. has been doing its business in our country for only a year. Also it has some competitors, and their market share is high. We can understand it from their recent year’s sells data and growth rate is high. They are coming up with new designed juice every year for almost all categories consumers. So we evaluated that Palm Beverages Ltd. in Bangladesh will be in star in the BCG matrix.

4.2 Marketing Strategy-Price

4.2.1 Pricing objectives

Pricing objectives or goals give direction to the whole pricing process. Determining what your objectives are is the first step in

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Star (Palm BeveragesLtd.)

Cash Cow Dog

?

pricing. When deciding on pricing objectives you must consider: 1) the overall financial, marketing, and strategic objectives of the company; 2) the objectives of your product or brand; 3) consumer price elasticity and price points; and 4) the resources you have available.

Some of the more common pricing objectives are:

maximize long-run profit maximize short-run profit increase sales volume (quantity) increase dollar sales increase market share obtain a target rate of return on investment (ROI) obtain a target rate of return on sales Stabilize market or stabilize market price: an objective to

stabilize price means that the marketing manager attempts to keep prices stable in the marketplace and to compete on non-price considerations. Stabilization of margin is basically a cost-plus approach in which the manager attempts to maintain the same margin regardless of changes in cost.

company growth maintain price leadership desensitize customers to price discourage new entrants into the industry match competitors prices encourage the exit of marginal firms from the industry survival avoid government investigation or intervention obtain or maintain the loyalty and enthusiasm of distributors

and other sales personnel enhance the image of the firm, brand, or product be perceived as “fair” by customers and potential customers create interest and excitement about a product discourage competitors from cutting prices use price to make the product “visible" build store traffic help prepare for the sale of the business (harvesting) social, ethical, or ideological objectives get competitive advantage

4.3 Marketing Strategy - promotion

We are going to launch an extensive promotional campaign as we choose value base pricing. The rationale behind using this pricing strategy is that we are the pioneer of making Guava Fruit juice so we can easily charge value base pricing. In our promotion strategy our main focus is extensive amount of TV commercials. Beside this we will also highlight the use of newspaper and billboard advertising. As an effective promotional strategy

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we can also provoke the customers through in-store advertisement. We will use both the push-pull strategy in our promotional efforts.

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4.3.1 Promotional Goal

Single element of an advertising campaign. A promotion might be a short-term price reduction, contest or sweepstakes, package giveaway, or free sample offer. A promotion might also be a single mailing within a direct mail campaign or series of advertisements that make up part of an ongoing print advertising campaign. The Milk Advisory Board has employed celebrities with milk mustaches in a series of magazine ads. These "Got Milk?" print ads are a promotion within an overall campaign to increase milk consumption

4.3.2 Promotional Mix

Marketing managers use different components of the promotional mix as tools for achieving company objectives—advertising, personal selling, public relations, and sales promotion. Each of these elements can be further divided into additional subcomponents or strategies. The majority of a company's promotional resources are usually spent on these four elements for a simple reason: Companies perceive these methods as the most effective means to promote their products. Other specialized promotional techniques, however, are also used to enhance promotional objective.

4.4 Marketing Strategy - Distribution

4.4.1 Geographical Coverage

At the beginning stage we will adapt the selective distribution strategy. In the second year we expand the market to the metropolitan areas. By the next year we are assuming that our product line will be shifted to the growth stage and our distribution will cover the mass market as well as the market overseas. In the first year we will distribute only in Dhaka.

4.4.2 Distribution Channel

Successful value creation needs successful value delivery. Instead of limiting our focus to the immediate suppliers, distributors, and customers, we are examining the whole supply chain that links raw materials and manufactured goods and show how to move toward the final customers.

To ensure effective of our product in the two year we’ll go through the distribution channel on a contractual basis. After the third when we will be able to reach break even point we’ve a plan to establish our own distribution network.

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5. 0 Financial Data and Projection

We are a new company; our company has no past financial record. But we conduct a huge market research to identify the market opportunity and the possible sell that we might have. We have a highly experienced work force which is very much skilled in their respective field. They help us to calculate the cost and to make an inference about the sells during the next five years. We have gone through a very structured process to find out our market opportunities that will influence to reach our break even. We have made an aim to reach to the break even in the third year. We have shown the way of reaching the break even in the following pages and the detail of our financial projection is also given:

Five Year Projections

Financial Year 2009 2010 2011 2012 2013

Price per Unit Tk. 20 Tk. 20 Tk. 20 Tk. 20 Tk. 20

Sales Volume 6,00,000 9,00,000 15,00,000 20,00,000 22,00,000

Sales Revenues (Price per Unit x Sales Volume)

1,20,00,000

1,80,00,000

3,00,00,000

4,00,00,000

4,40,00,000

Total Variable Costs 84,00,000

1,35,00,000

2,10,00,000

2,80,00,000

2,80,00,000

Gross Margin(Sales Revenues – Cost of goods sold)

36,00,000

45,00,000 90,00,000 1,20,00,000

1,60,00,000

Less:Expense 38,00,00

045,50,000 46,00,000 55,00,000 60,00,000

Net Profit (2,00,000)

(50,000) 44,00,000 65,00,000 1,00,00,000

* Here, Fixed Cost = Tk. 3,00,00,000

Projected Expense List

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2009 2010 2011 2012 2013

Rent 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000

salary 1,00,000 2,50,000 3,00,000 3,00,000 3,00,000

Promotion 20,00,000 26,00,000 26,00,000 35,00,000 40,00,000

Interest 15,00,000 15,00,000 15,00,000 15,00,000 15,00,000

Total 38,00,000 45,50,000 46,00,000 55,00,000 60,00,000

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Calculation and Analysis of Breakeven Point

Break even volume =

=

= 30,00,000 Units

Our Profit Volume ratio =

= 0.5

Our break even sales volume =

=

= 6,00,00,000.

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6. 0 Implementation Plan

In this phase we show how we will implement our marketing plan. To implement the plan is a very complex process. We want a very steady and control development of the market. To capture the market we need to launch a very creative promotional campaign which we mentioned in the plan.

The expected market capture plan is mentioned below:

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Break-Even Point

Total Revenue

Total Cost

Fixed Cost(Tk. 3,00,00,000)

7. 0 Evaluation and Control

Evaluation

• From our Marketing Research we have come to this point that we will be able to achieve the breakeven point by the third year.

• If we can create right response among the customer then we can reach our company target properly.

• Our promotional strategy should be sound, effective & appropriate to create the appropriate response in the target market.

• Beside this we may apply both push-pull strategies as a part of our extensive marketing efforts.

• Starting with selective distribution we will be able to profitably cover the whole market

within our five years plan.

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Year New Markets Added

Cumulative markets

Cumulative Percentage

1st Year 1 1 3%

2nd Year 5 6 17%

3rd Year 2 8 23%

4th Year 1 9 26%

5th Year 2 11 31%

Market Coverage: Five Year Plan

Control

To measure the overall performance of our marketing efforts every year we will conduct the half yearly analysis so that it will be possible for us to confront to our set objectives. If any deviation occurs then corrective measures will be taken by the skilled quality control departments.

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